A
eurobond with a
fixed coupon. Eurobonds are
bonds issued or
traded in a country using a
currency other than the one in which the bond is denominated. This means that the bond uses a certain currency, but operates outside the jurisdiction of the
central bank that issues that currency. Eurobonds are
issued by
multinational corporations; for example, a British company may issue a eurobond in Germany, denominating it in
U.S. dollars. Euro straight bonds provide a degree of certainty unavailable to variable coupon bonds, but expose an
investor to
interest rate risk. It is important to note that the term has nothing to do with the
euro, and the prefix "euro-" is used more generally to refer to
deposits outside the jurisdiction of the domestic
central bank.